15CA & 15CB Filing in India | Expert Help for Tax Compliance

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15CA-15CB Filing - Compliance for Foreign Remittances

If you are an Indian resident making or receiving payments from a foreign entity, you must comply with the legal provisions of the Income Tax Act, 1961. Before remitting funds abroad, it is mandatory to file Form 15CA and Form 15CB with the tax authorities. These forms ensure that tax compliance is met for international transactions.

However, the filing process requires in-depth knowledge of tax laws. Incorrect filing may lead to compliance issues and penalties. With Rule Infinity, our experts ensure seamless compliance, allowing you to focus on your business.

Tax Deduction, Legal Compliance

Section 195 of the Income-tax Act, 1961

Under Section 195 of the Income Tax Act, 1961, any individual or entity making a payment to a non-resident, including a foreign company, must deduct income tax at the applicable rate before processing the payment.

Additionally, the remitter must submit Form 15CA, which contains details of the payment being made to the non-resident. For payments exceeding INR 5 lakh, a certificate in Form 15CB, certified by a chartered accountant, is required. This certificate includes information on the nature of the payment, the applicable tax rate, and the amount of tax deducted.

Importance of Form 15CA & Form 15CB

Under the Income Tax Act, 1961, Form 15CA and Form 15CB are required for payments made by a resident to a non-resident. Form 15CA is a declaration by the payer, while Form 15CB is a CA-certified document ensuring compliance with tax laws and DTAA provisions. These forms help in accurate reporting and timely tax collection on foreign payments.

Form 15CA

Form 15CA is a declaration submitted by an individual or company for remittances made to a non-resident. It must be filed online on the Income Tax Department’s website before processing the payment. This form helps the tax authorities track foreign remittances and ensure compliance with the Income Tax Act.

Form 15CB

Form 15CB is a certificate issued by a Chartered Accountant under Section 195(6) of the Income Tax Act, 1961, for payments to non-residents or foreign companies. It ensures that the payment complies with the provisions of the Income Tax Act and any applicable Double Taxation Avoidance Agreement (DTAA) between India and the recipient’s country.

Mandatory Declaration, Tax Compliance

Applicability of Form 15CA and Form CB

Form 15CA and Form 15CB are required for foreign remittances under the Income Tax Act, 1961. Their applicability depends on the nature and amount of the remittance.

Applicability of Form 15CA

Required for any remittance made to a non-resident or foreign company, regardless of tax liability.
Applicable to residents, non-residents, domestic companies, and foreign companies.
Mandatory when income accrues, arises, is received, or is deemed to be received in India under Section 5 of the Income Tax Act.

Applicability of Form 15CB

Issued by a Chartered Accountant (CA) when the remittance is taxable.
Required if the remittance amount exceeds INR 5,00,000.
Necessary when no order or certificate has been obtained from the Assessing Officer (AO).

When is Form 15CA not required?

If the remittance falls under the specified payment list in Rule 37BB of the Income Tax Rules.

If the remittance is exempt from tax under the Income Tax Act or a relevant tax treaty.

If the remittance is for education abroad and does not exceed the RBI-prescribed limit.

When the remittance does not require Reserve Bank of India (RBI) approval under Section 5 of the Foreign Exchange Management Act (FEMA), 1999.

When the total remittance during a financial year does not exceed INR 5 lakh, provided it is not for a foreign tour or purchasing a foreign asset.

When the remittance is made by the government or an entity specified under Section 10 of the Income Tax Act.

When is Form 15CB not required?

If the remittance is not taxable in India.

If the remittee's country taxes the income.

If the total remittances during the fiscal year do not exceed INR 5,00,000.

If not for travel or foreign asset purchase.

For education abroad within RBI limit.

Income from Salary & Pension

Income Tax Filing is mandatory if Tax payers have only salary or pension Income that is More than the Basic exemption Limit specified Under section 139 of the Income tax Law.

Optional Add-ons

Urgent/Same Day Service

+₹1,000 to ₹2,000

Bank coordination support

+₹500 to ₹1,000

Additional form 15CA/CB for same transaction

+₹1,000

basic plan

₹1,500 to ₹2,000

Best for: Simple remittance cases like tuition fees, medical expenses, maintenance, or personal remittance

One Form 15CA (Part A or B)
One 15CB (for straightforward transactions under LRS
Processing within 3 working days
Email support

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Standard Plan

₹3,000 to ₹4,000

Best for: Moderate complexity – professional fees, vendor payments, property purchases, or business remittance

One Form 15CA (Part C)
One Form 15CB with moderate documentation
Review of remittance agreement & TDS rate application
Processing within 2 working days
Phone and email support
One revision (if required by the bank)

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premium plan

₹5,000 to ₹7,000+

Best for: Complex or high-value remittances, multiple 15CA/CB forms, NRI cases, or capital gain repatriation

Multiple 15CA/CB forms if needed
Detailed transaction vetting and DTAA benefits application
Immediate processing (same day or next day)
Coordination with banker or client’s legal team
Unlimited revisions
Priority WhatsApp & phone support

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Specified payments where Form 15 CA/15CB is not required

According to the latest regulations, Form 15CA and Form 15CB are not required for the following payments:

Indian investment abroad
Advance payment against imports
Intermediary trade
Imports by diplomatic missions
Loans extended to non-residents

Imports below INR 5,00,000
Construction projects by Indian companies, including import of goods at the project site
Freight insurance
Operating expenses of Indian airline firms
Travel under Basic Travel Quota (BTQ), pilgrimage, medical treatment, business travel, and education

Operating expenses of Indian shipping firms/companies operating abroad
Payments for maintenance of offices abroad
Remittances by foreign embassies in India
Remittances by non-residents for family maintenance and savings
Donations and personal gifts

Donations to charitable and religious institutions abroad
Donations and grants to charitable institutions of foreign governments and to governments themselves
Contributions to international institutions
Refunds, reductions, or rebates in invoice value for exports
Remittances for payment or refund of taxes
Payments by residents for international bidding

Remittance Details, Tax Compliance

The Contents of Form 15 CA and Form 15CB

Parts of Form 15CA

Part A – For taxable remittances up to INR 5 lakh.
Part B – For taxable remittances exceeding INR 5 lakh with an order/certificate under Section 195(2)/197/195(3).
Part C – For taxable remittances exceeding INR 5 lakh, requiring a Form 15CB certificate.
Part D – For remittances not chargeable to tax.

Parts of Form 15CB

Part A – Includes details of the remitter, beneficiary, and remittance nature.
Part B – The CA verifies compliance with the Income Tax Act and DTAA.
Part C – The CA certifies the accuracy of the information.
Annexure – An optional section for additional details.

Details required for filing the forms

PAN of the remitter and the beneficiary

The remitter and beneficiary must provide their Permanent Account Number (PAN) for verification. This ensures compliance with tax regulations.

Amount of the remittance

The remittance amount should be stated in Indian Rupees for accurate reporting. This ensures compliance with financial regulations.

Nature and purpose of the remittance

The nature and purpose of the remittance, like services, royalty, or dividends, must be specified. This helps ensure proper tax compliance.

Relevant sections and articles of the Income Tax Act and DTAA

If applicable, specify the relevant sections of the Income Tax Act and DTAA. Mention the applicable articles for tax compliance.

Bank details

The remitter and beneficiary’s bank details, including name, branch, and account number, must be provided. Accurate banking information ensures smooth processing.

Certificate from a Chartered Accountant (Form 15CB)

If Form 15CB is required, provide the CA’s name, membership number, issuance date, and remittance details. These ensure proper certification and compliance.

Procedure for filing Form 15 CA and 15CB

Obtain a valid PAN

A valid Permanent Account Number (PAN) must be issued by the Income Tax Department before filing Form 15CA. This ensures proper tax identification.

Form 15CB Eligibility

If the remittance exceeds INR 5 lakhs, a CA must file Form 15CB. This certifies taxability and ensures applicable taxes are paid.

Fill Form 15 CA

The remitter must submit Form 15CA online via the income tax e-filing portal. It includes details of the remitter, remittee, remittance nature, and amount.

Get CA certification

If Form 15CB is required, the remitter must get a CA-certified Form 15CB. This ensures tax compliance before making the remittance.

Submit Form 15CA and 15CB

After filling and certifying Form 15CA and 15CB, the remitter must upload them on the income tax e-filing portal. This ensures compliance before remittance.

Obtain an acknowledgment

After submitting Form 15CA, an acknowledgment with a unique number is generated. Keep it for future reference and compliance purposes.

15CA - 15CB Filing FAQ's

What is Form 15CA-15CB?

Form 15CA is an electronic declaration submitted by the remitter to the bank before making a payment to a non-resident. Form 15CB is a CA-issued certificate verifying tax deduction and regulatory compliance.

What is the difference between Form 15CA and Form 15CB?

Form 15CA is a declaration submitted by the remitter to the bank, while Form 15CB is a CA-certified document verifying tax deduction and regulatory compliance.

Who is required to file Form 15CA-15CB?

Form 15CA and 15CB must be filed by anyone making a remittance outside India. The remitter can be an individual, company, or entity paying a non-resident or foreign company.

What are the different types of transactions that require 15CA-15CB filing?

Various transactions require Form 15CA and 15CB filing, including:

Payment for importing goods or services.
Payment for royalty or technical fees.
Remittance of dividends.
Payment of interest on loans or deposits.
Payments for foreign collaborations or joint ventures.
Remittance for education or medical treatment abroad.
Remittance for travel expenses.
Payment of insurance premiums.
Any other taxable remittance under the Income Tax Act, 1961.

Is Form 15CA-15CB mandatory for all foreign remittances?

Form 15CA and 15CB are not required for all foreign remittances; their necessity depends on the remittance's nature and amount.
As per current regulations, these forms are mandatory for remittances outside India, except in the following cases:
- Remittances exempt under Rule 37BB of the Income Tax Rules, 1962, such as gifts, donations, government payments, and certain investments.
- Remittances below INR 5 lakhs that are not subject to TDS under Section 195 of the Income Tax Act, 1961.

How is the information provided in Form 15CA verified?

The Authorized Dealer Bank (AD Bank) verifies the information in Form 15CA and cross-checks it with Form 15CB for accuracy.

Can Form 15CA-15CB be filed manually?

Form 15CA and 15CB must be submitted electronically on the Income Tax Department’s website.

What is the penalty for not filing Form 15CA-15CB?

Failure to file Form 15CA and 15CB may result in penalties and interest under Section 271-I of the Income Tax Act, 1961. The penalty for non-filing or incorrect filing is INR 1 lakh or the transaction amount, whichever is lower. The Assessing Officer (AO) may impose this penalty after giving the remitter a chance to explain the non-compliance.

Can the same Form 15CA be used for multiple transactions?

Each transaction requires a separate Form 15CA, even if they involve the same beneficiary. A single Form 15CA cannot be used for multiple transactions.

Is Form 15CB required for all transactions?

A single Form 15CA can be used for multiple transactions if they share the same nature, purpose, amount, and beneficiary.

As per Income Tax Department guidelines, Form 15CA can be used for multiple transactions if:

The nature and purpose of the remittance are identical.
The remittance amount remains the same for all transactions.
The payments are made to the same beneficiary.
The remittance country is the same for all transactions.

Who can issue Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant (CA) in India, confirming that the remittance is either not taxable in India or that any applicable tax has been deducted and deposited as per the Income Tax Act, 1961.